Cheap debt is not enough to get China’s homebuyers spending again

China's policymakers have introduced a new programme to help homebuyers, offering subsidies of one percentage point of the interest rate on mortgage loans for up to five years. This programme aims to encourage first-time buyers to take out mortgages within the next 12 months. However, despite cheap debt, China's homebuyers are still hesitant to spend, indicating a deeper issue in the property sector. This reluctance to invest suggests that the country's economic recovery may be slower than expected.

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China's property sector is still slumping despite cheap debt. Policymakers are trying new incentives to boost homebuyers' spending.

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